You will be eligible for tax refund when TDS deducted is more than your income tax liability. Such kind of situation may arise due to higher rate of tax compare to the actual rate of tax applicable to you. In case of salary employee, if your employer has deducted Rs. 1, 20,000 as tax from your salary instead of the actual deduction of Rs.1, 00,000 then you are eligible for Rs. 20, 000 as tax refund from IT department.
To claim such refund you have to follow the procedures as laid down by IT department.
There can be some other reason for getting tax refund like you are working as an insurance agent or collection agent where the person making payment to you has deducted tax to which you are not eligible. In this type of situation, you can claim the entire amount deducted as refund from IT department.
How tax refund process work
You need to file your IT return with the IT department either online or in physical form. After filling your IT return, department will verify the details and process your return if it fits the criteria of getting refund.
Refund will be either issued to your bank account provided at the time of filling your IT return or a cheque will be dispatched to your mailing address provided in the IT return.
Prerequisites to apply for a refund
- You must have a PAN to apply for refund
- You must have received form 16/16A to know the tax amount deducted from your source of income or you have checked form 26AS to know such amount.
- You must have a bank account number to get refund.
How to file tax refund
If your taxable income is more than Rs. 5, 00,000 then you need to file your IT return online. Tax payers having less then Rs. 5, 00,000 incomes can file their IT return online or in physical form by visiting their nearest IT office.
How to file Tax Refund online
Before filling your IT return you must register your PAN with IT department online. So register your pan and get your password for it. Here are the steps for IT refund filling;
- Visit IT efilling website
- Login with your PAN as user id and the chosen password.
- Download IT return from that is applicable to you.
- Fill up the form with all correct details like bank account number, IFSC code, PAN number and other details.
- Double check the refund amount reflecting in your IT return.
- Upload your IT return by using the upload option at the site.
- Take a print out of the acknowledgement generated from such filling.
- Send your IT return acknowledgment (ITRV) to IT department’s Bangalore office. Most of the people file their IT return online and after filling they think that, it’s done. Please remember, if you are filling your IT return without using your digital signature (electronic signature) then you need to send your ITRV (IT acknowledgement) to IT office, CPC, Bangalore. If you used your digital signature while filling IT return then no need to send such acknowledgement to Bangalore office.
Tax refund status online
IT Refund status can be viewed online either using your form 26AS fom or by getting in to the NSDL site. You need not login to income tax site or any other site to view your IT refund. Just by entering the PAN number and assessment year you can view the IT refund status.
You can also drop email to firstname.lastname@example.org for more details on IT refund status.
Reasons for not getting tax refund in time
- Mismatch of income tax paid details with form 26AS
- Selecting wrong IT return form
- Wrong bank account number and/or IFSC code
- Wrong mailing address
- Already a tax demand exist in the name of tax payer
- Non submission of ITRV to IT department
There can be some technical problems from the income tax side to get you your refund in time.
How to get faster tax refund
To get faster IT refund you need to do following things;
- Compare your form 16/16A with the online form 26AS to know the details of income tax that has been deducted and deposited in your PAN.
- Provide your correct mailing address, Operational Bank Account Number and IFSC code of your bank branch.
- File your correct IT return either online or in physical form.
- Submit your ITRV within 120 days of filling your IT return
- Check your refund status regularly. You can also check your bank account to know if the amount has been deposited or not.
For speedy process of IT refund we suggest you to file your IT return online.
FAQ on tax refund
I forgot to claim IT refund while filling my IT return. Can you please suggest how to get it now?
You can get your IT refund by applying in form 30 to the IT department.